winpieTaiwan-focused

Credit Card Debt

Paying only the minimum on credit card debt can stretch repayment across 5+ years and multiply total interest. This tool shows how long minimum payments take, the interest cost, and how much faster you'd be debt-free by paying even a little extra each month.

Inputs

Taiwan credit-card revolving rates run 6–15% (legal cap 15%).

Typically 5–10% of new charges.

Commonly around 1,000 depending on the issuer.

Fixed amount added on top of the minimum each month to see how much faster the debt clears.

Results
Minimum payment only
3 yr
Cumulative interest NT$13,425
First payment ~NT$10,125; total paid NT$113,425.

Method: each month the balance accrues monthly interest, then the minimum payment (or fixed extra payment) is deducted. Paying only the minimum means principal drops slowly and most of each payment goes to interest. Credit-card revolving interest is the most expensive consumer debt; pay in full whenever possible.

Taiwan's legal maximum credit card revolving interest rate is 15%. Personal loans typically run 7–10%. Car loans 3–5%. Mortgages 2%. Always pay off higher-rate debt first.

Frequently asked

Why is paying only the minimum so dangerous?
Taiwan caps revolving credit-card interest at 15% (legal max). Monthly interest ≈ balance × 1.25%. The minimum payment (typically 5-10% of balance) is mostly consumed by interest, so principal barely moves. NT$100K paid at minimum can take 5-7 years to clear, with NT$50K+ in interest paid.
What if I genuinely can't pay it off?
Three steps: (1) stop adding new charges immediately; (2) apply for debt consolidation through the Bankers Association (rate drops to 5-9%, 60-180 month terms); (3) for severe cases, consider personal debt rehabilitation (更生 / 清算). Never borrow another card or cash card to pay an existing card — that only enlarges the principal at higher rates.
Pay off highest balance first or highest rate first?
Always highest rate first (the avalanche method). With 15% credit card, 5% car loan, and 2% mortgage, every extra dollar to the card saves the most interest. Some prefer the snowball method (small balances first, momentum), but avalanche is mathematically optimal.
Does paying NT$1,000 extra each month really matter?
Hugely. NT$100K balance at 15% paying just the minimum takes ~5 years. Adding NT$1,000/month cuts it to under 3 years and reduces total interest by nearly 50%. The tool shows the exact savings for any extra monthly payment you enter.
Should I take a 0% installment offer to clear card debt?
0% installments usually carry a 5-10% fee, equivalent to 8-12% annualized. That beats 15% revolving rates only if you can clear the balance within the promo window. After it expires, the rate often snaps back to 15% on the remaining balance, which can leave you worse off. Use the tool to convert any installment fee into an effective rate before signing.
Does the tool store my balance?
No. All math runs locally in your browser. Nothing is sent or persisted.

Related tools

All tools →